Leidos, Inc. Announces the Expiration and Results of Cash Tender Offer for Any and All 3.625% Senior Notes Due 2025

PRNewswire 21-Feb-2025 8:00 AM

RESTON, Va., Feb. 21, 2025 /PRNewswire/ -- Leidos Holdings, Inc. (NYSE:LDOS) ("Holdings") today announced that the previously announced offer by its wholly-owned subsidiary, Leidos, Inc. ("Leidos") to purchase for cash (the "Tender Offer") any and all of its outstanding 3.625% Senior Notes due 2025 (the "2025 Notes") expired at 5:00 p.m., New York City time, on February 20, 2025 (the "Expiration Time"). As of the Expiration Time, $267,393,000 or 53.48% of the $500 million aggregate principal amount outstanding of the 2025 Notes had been validly tendered and not validly withdrawn (not including any amount of 2025 Notes submitted pursuant to the guaranteed delivery procedures described in the Offer to Purchase, dated as of February 13, 2025 (the "Offer to Purchase") and the related notice of guaranteed delivery (together with the Offer to Purchase, the "Offer Documents")). Payment for the 2025 Notes validly tendered and accepted for purchase will be made on February 25, 2025 (the "Settlement Date").

Certain information regarding the 2025 Notes is set forth in the table below.

Holders of the 2025 Notes ("Holders") who validly tendered, and did not validly withdraw, their 2025 Notes at or prior to the Expiration Time, or pursuant to the guaranteed delivery procedures described in the Offer Documents, will be eligible to receive in cash the consideration (the "Notes Consideration") of $998.30 for each $1,000 principal amount of the 2025 Notes validly tendered, and not validly withdrawn, and accepted for purchase, plus accrued and unpaid interest on the 2025 Notes validly tendered and accepted for purchase from November 15, 2024, the last interest payment date, up to, but not including, the Settlement Date.

Citigroup Global Markets Inc. ("Citigroup"), J.P. Morgan Securities LLC ("J.P. Morgan") and U.S. Bancorp Investments, Inc. ("US Bancorp") are acting as Dealer Managers (the "Dealer Managers") in connection with the Tender Offer, and Global Bondholder Services Corporation ("GBSC") is serving as the depositary agent and information agent for the Tender Offer.

This press release is neither an offer to purchase nor a solicitation of an offer to sell any of the 2025 Notes, or an offer to sell or a solicitation of an offer to purchase the new notes pursuant to the Offering nor is it a solicitation for acceptance of the Tender Offer, nor shall it constitute a notice of redemption under the indenture governing the 2025 Notes. Leidos is making the Tender Offer only by, and pursuant to the terms of, the Offer Documents. The Tender Offer is not being made in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction.

About Leidos

Leidos is an industry and technology leader serving government and commercial customers with smarter, more efficient digital and mission innovations. Headquartered in Reston, Virginia, with 48,000 global employees, Leidos reported annual revenues of approximately $16.7 billion for the fiscal year ended January 3, 2025.

Forward-Looking Statements

This release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that are based on our management's belief and assumptions about the future in light of information currently available to our management. In some cases, you can identify forward-looking statements by words such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue," and similar words or phrases or the negative of these words or phrases. These statements relate to future events or our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable when made, we cannot guarantee future results, levels of activity, performance or achievements. There are a number of important factors that could cause our actual results to differ materially from those results anticipated by our forward-looking statements, which include, but are not limited to:

• developments in the U.S. government defense and non-defense budgets, including budget reductions, sequestration, implementation of spending limits or changes in budgetary priorities, delays in the U.S. government budget process or a government shutdown, or the U.S. government's failure to raise the debt ceiling, which increases the possibility of a default by the U.S. government on its debt obligations, related credit-rating downgrades, or an economic recession;
• uncertainties in tax due to new tax legislation or other regulatory developments;
• deterioration of economic conditions or weakening in credit or capital markets;
• uncertainty in the consequences of current and future geopolitical events;
• inflationary pressures and fluctuations in interest rates;
• delays in the U.S. government contract procurement process or the award of contracts and delays or loss of contracts as a result of competitor protests;
• changes in U.S. government procurement rules, regulations and practices, including its organizational conflict of interest rules;
• changes in global trade policies, tariffs and other measures that could restrict international trade;
• increased preference by the U.S. government for minority-owned, small and small disadvantaged businesses;
• fluctuations in foreign currency exchange rates;
• our compliance with various U.S. government and other government procurement rules and regulations;
• governmental reviews, audits and investigations of our company;
• our ability to effectively compete and win contracts with the U.S. government and other customers;
• our ability to respond rapidly to emerging technology trends, including the use of artificial intelligence;
• our reliance on information technology spending by hospitals/healthcare organizations;
• our reliance on infrastructure investments by industrial and natural resources organizations;
• energy efficiency and alternative energy sourcing investments;
• investments by U.S. government and commercial organizations in environmental impact and remediation projects;
• the effects of an epidemic, pandemic or similar outbreak may have on our business, financial position, results of operations and/or cash flows;
• our ability to attract, train and retain skilled employees, including our management team, and to obtain security clearances for our employees;
• our ability to accurately estimate costs, including cost increases due to inflation, associated with our firm-fixed-price ("FFP") contracts and other contracts;
• resolution of legal and other disputes with our customers and others or legal or regulatory compliance issues;
• cybersecurity, data security or other security threats, system failures or other disruptions of our business;
• our compliance with international, federal, state and local laws and regulations regarding privacy, data security, protection, storage, retention, transfer, disposal and other processing, technology protection and personal information;
• the damage and disruption to our business resulting from natural disasters and the effects of climate change;
• our ability to effectively acquire businesses and make investments;
• our ability to maintain relationships with prime contractors, subcontractors and joint venture partners;
• our ability to manage performance and other risks related to customer contracts;
• the failure of our inspection or detection systems to detect threats;
• the adequacy of our insurance programs, customer indemnifications or other liability protections designed to protect us from significant product or other liability claims, including cybersecurity attacks;
• our ability to manage risks associated with our international business;
• our ability to comply with the U.S. Foreign Corrupt Practices Act, the U.K. Bribery Act of 2010 and similar worldwide anti-corruption and anti-bribery laws and regulations;
• our ability to protect our intellectual property and other proprietary rights by third parties of infringement, misappropriation or other violations by us of their intellectual property rights;
• our ability to prevail in litigation brought by third parties of infringement, misappropriation or other violations by us of their intellectual property rights;
• our ability to declare or increase future dividends based on our earnings, financial condition, capital requirements and other factors, including compliance with applicable law and our agreements;
• our ability to grow our commercial health and infrastructure businesses, which could be negatively affected by budgetary constraints faced by hospitals and by developers of energy and infrastructure projects;
• our ability to successfully integrate acquired businesses; and
• our ability to execute our business plan and long-term management initiatives effectively and to overcome these and other known and unknown risks that we face.

These are only some of the factors that may affect the forward-looking statements contained in this release. For further information concerning risks and uncertainties associated with our business, please refer to the filings we make from time to time with the U.S. Securities and Exchange Commission, including the "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Legal Proceedings" sections of our latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

All information in this release is as of February 21, 2025. We do not undertake any obligation to update or revise any of the forward-looking statements to reflect events, circumstances, changes in expectations, or the occurrence of unanticipated events after the date of those statements or to conform these statements to actual results.

CONTACTS:
Investor Relations:
Stuart Davis 571.526.6124
ir@leidos.com 

Media Contact:
Victor Melara
(703) 431-4612
victor.a.melara@leidos.com 

View original content:https://www.prnewswire.com/news-releases/leidos-inc-announces-the-expiration-and-results-of-cash-tender-offer-for-any-and-all-3-625-senior-notes-due-2025--302382273.html

SOURCE Leidos